Prepare journal entries for each of the transactions and adjustments

Chapati Company started business on January 1, 2016. Some of the events that occurred in its first year of operations follow:

1.An insurance policy was purchased on February 28 for $1,800.

2.During the year, inventory costing $140,000 was purchased, all on account.

3.Sales to customers totalled $200,000. Of these, $40,000 were cash sales.

4.Payments to suppliers for inventory that had been purchased earlier totalled $110,000.

5.Collections from customers on account during the year totalled $140,000.

6.Customers paid $25,000 in advance payments for goods that will be delivered later.

7.Equipment that cost $140,000 was purchased on October 1 for $40,000 cash plus a two-year, 10% note with a principal amount of $100,000.

8.Wages totalling $44,000 were paid to employees during the year.

9.The board of directors declared dividends of $12,000 in December 2016, to be paid in January 2017.

10.A year-end review revealed that the insurance policy (in item 1) was for one year of coverage that began on March 1, 2016.

11.The equipment that was purchased (in item 7) on October 1, 2016, is to be depreciated using the straight-line method, with an estimated useful life of 10 years and an estimated residual value of $20,000.

12.No interest was paid on the note during the year.

13.A physical count at year end revealed $20,000 of unsold inventory still on hand.

14.It was determined that 80% of the goods that were paid for in advance (in item 6) had been delivered to the customers by the end of the year.

15.In addition to the wages that were paid during the year, wages of $4,000 remained unpaid at the end of the year.

The comparative statements of financial position for 2023 and 2022 and the statement of profit or loss for 2023 are given below for Dux Company. Additional information from Dux's accounting records is also provided.

Additional information from the accounting records:

1. A building that originally cost $40,000, and which was three-fourths depreciated, was sold for $7,000.
2. The ordinary shares of Byrd Corporation were purchased for $5,000 as a long-term investment.
3. Property was acquired by issuing a 13%, seven-year, $30,000 note payable to the seller.
4. New equipment was purchased for $15,000 cash.
5. On January 1, 2023, bonds were sold at their $25,000 principal amount.
6. On January 19, Dux issued a 1-for-20 bonus issue (1,000 ordinary shares). Assume that the bonus issue was valued at the market price of $14 per share ($10 par value) at that time, and the corporation law requires a reclassification from retained earnings to issued capital.
7. Cash dividends of $13,000 were paid to shareholders.
8. On November 12, 500 ordinary shares were repurchased as treasury shares at a cost of $8,000.

Required:
Prepare the statement of cash flows for Dux Company using the indirect method, assuming Dux classifies dividend revenue and interest paid as operating activities and dividends paid as a financing activity. (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands. (i.e., 10,000 should be entered as 10).)

Infinity Designs, an interior design company, has experienced a drop in business due to an increase in interest rates and a corresponding slowdown in remodeling projects. To stimulate business, the company is considering exhibiting at the Home and Garden Expo. The exhibit will cost the company $12,000 for space. At the show, Infinity Designs will present a slide show on a PC, pass out brochures that are printed previously, (the company printed more than needed), and show its portfolio of previous jobs. The company estimates that revenue will increase by $36,000 over the next year as a result of the exhibit. For the previous year, profit was as follows: Revenue $201,000 Less: Design supplies (variable cost) $17,000 Salary of Samantha Spade (owner) 80,000 Salary of Kim Bridesdale (full time employee) 55,000 Rent 18,000 Utilities 6,000 Depreciation of office equipment 3,600 Printing of advertising materials 700 Advertising in Middleton Journal 2,500 Travel expenses other than depreciation of autos (variable cost) $2,800 Depreciation of company cars 9,000 Required: Calculate the impact of the exhibit on company profit. Round to two decimal places.

Round to two decimal places.

Infinity Designs, an interior design company, has experienced a drop in business due to an increase in interest rates and a corresponding slowdown in remodeling projects. To stimulate business, the company is considering exhibiting at the Home and Garden Expo. The exhibit will cost the company $12,000 for space. At the show, Infinity Designs will present a slide show on a PC, pass out brochures that are printed previously, (the company printed more than needed), and show its portfolio of previous jobs. The company estimates that revenue will increase by $36,000 over the next year as a result of the exhibit. For the previous year, profit was as follows: Revenue $201,000 Less: Design supplies (variable cost) $16,500 Salary of Samantha Spade (owner) 80,000 Salary of Kim Bridesdale (full time employee) 55,000 Rent 18,000 Utilities 6,000 Depreciation of office equipment 3,600 Printing of advertising materials 700 Advertising in Middleton Journal 2,500 Travel expenses other than depreciation of autos (variable cost) $2,400 Depreciation of company cars 9,000 Required: Calculate the impact of the exhibit on company profit. Your Answer:

Round to two decimal places.

Round to two decimal places.

Your Answer:

McEwan Industries sells on terms of 3/10, net 40. Total sales for the year are $1,048,500; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 82 days after their purchases. Assume 365 days in year for your calculations.

a)What is the days sales outstanding?

b)What is the average amount of receivables?

c)What is the percentage cost of trade credit to customers who take the discount?

d)What is the percentage cost of trade credit to customers who do not take the discount and pay in 82 days?(Both nominal and effective cost)

e)What would happen to McEwan’s average accounts receivable if it toughened up on its collection policy with the result that all nondiscount customers paid on the 40th day?

•Exercise 1: It is assumed that 80% of the students pass the MBA 510 course. Calculate the following for a class of 15 students:

(a) the mean number of students expected to pass;

(b) the standard deviation;

(c) P(exactly 12 of the 15 students pass);

(d) P(at least 12 of the 15 students pass).

•Exercise 2: Five customers enter a store and make independent purchase decisions. The store’s records indicate that 20% of all customers who enter the store will make a purchase.         

(a) Does a general discrete probability distribution or the binomial distribution apply?

(b) Write the probability form applicable.  

Calculate the probability that:

(c) exactly 4 customers will make a purchase;

(d) less than 3 customers will make a purchase.

Please show all the work in Excel or Word.